| California 2017 Funding Assumption Survey | ||||||||||||||||
| Updated May 2017 | ||||||||||||||||
| Assumed | Base | Assumed | Amortization | Valuation | Asset | |||||||||||
| RANK | PLAN SPONSOR | Investment | Wage | "Excess" | Period | Asset | Smoothing | |||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | 2011 | 2010 | 2009 | Return | Inflation | Investment | (years) | Corridor | Period | |||
| Return | ||||||||||||||||
| (a) | (b) | (a) - (b) | ||||||||||||||
| 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | CalPERS - Legislative (closed) | 5.75% | 3.00% | 2.75% | 30- but FR > 100%; G/L 30 layered | N/A (Market) | N/A | ||
| 2 | 4 | 4 | 23 | 17 | 3 | 7 | 13 | City of San Jose (Safety) | 6.875% | 3.25% | 3.625% | most G/L 15 layered | Y: 80-120 | 5 | ||
| 3 | 2 | 2 | 2 | 4 | 5 | 4 | 4 | Contra Costa County | 7.00% | 3.25% | 3.75% | 7 - declining; G/L 18 layered | N | 5 | ||
| 4 | 3 | 3 | 3 | 2 | 9 | 9 | 10 | San Mateo County | 7.00% | 3.25% | 3.75% | 7 - declining; G/L 15 layered | Y: 80-120 | 5 | ||
| 5 | 5 | 5 | 4 | 7 | 10 | 11 | 15 | City of San Diego 5 | 7.00% | 3.05% | 3.95% | 12-declining;G/L layered 15. most level $$ | Y: 80-120 | 4 | ||
| 6 | 6 | 6 | 5 | 3 | 4 | 5 | 5 | CalPERS - Judges 1, 3 | 7.00% | 3.00% | 4.00% | 30-declining; G/L 30 layered (100+% FR) | N/A (market) | N/A | ||
| 7 | 8 | 8 | 8 | 5 | 6 | 8 | 7 | LA Department of Water & Power | 7.25% | 3.50% | 3.75% | 15 - layered Level $$ | N | 5 | ||
| 8 | 11 | 11 | 10 | 22 | 20 | 22 | 24 | Fresno County | 7.00% | 3.50% | 3.50% | 17-declining; G/L 15 layered | Y: 70-130 | 5 | ||
| 9 | 20 | 20 | 16 | 18 | 18 | 30 | 31 | Santa Barbara County 3 | 7.00% | 3.00% | 4.00% | most 14-declining; G/L 19 layered | N/A(market) | N/A | ||
| 10 | 14 | 14 | 12 | 13 | 14 | 13 | 11 | Sonoma County | 7.25% | 3.50% | 3.75% | 12-declining; G/L 20 layered | N | 5 | ||
| 11 | 15 | 15 | 13 | 33 | 32 | 31 | 32 | City of Fresno (Safety) 11 | 7.25% | 3.50% | 3.75% | G/L 15-layered (100+% FR) | N | 5 | ||
| 12 | 16 | 16 | 14 | 34 | 31 | 32 | 33 | City of Fresno (General) 6 11 | 7.25% | 3.50% | 3.75% | G/L 15 layered (100+% FR) | N | 5 | ||
| 13 | 7 | 7 | 6 | 8 | 11 | 37 | 36 | Alameda-Contra Costa Transit 4 | 7.25% | 3.00% | 4.25% | 12-declining; G/L layered | Y: 80-120 | 5 | ||
| 14 | 9 | 9 | 7 | 11 | 13 | 10 | 12 | Ventura County | 7.50% | 3.50% | 4.00% | 3-declining; G/L 15 - layered | N | 5 | ||
| 15 | 10 | 10 | 9 | 6 | 12 | 12 | 16 | San Bernardino County | 7.50% | 3.75% | 3.75% | 6-declining; G/L layered 20 | N | 5 | ||
| 16 | 12 | 12 | 31 | 29 | 33 | 34 | 40 | City of San Jose (General) | 6.875% | 2.85% | 4.025% | most 23 - declining; G/L layered 20 | N | 5 | ||
| 17 | 13 | 13 | 11 | 10 | 8 | 3 | 3 | City & County of San Francisco | 7.50% | 3.75% | 3.75% | most 17-declining; G/L 20 layered | N | 5 | ||
| 18 | 17 | 22 | 22 | 31 | 30 | 29 | 30 | San Diego County | 7.50% | 3.75% | 3.75% | 8-declining; G/L 20 layered | N | 5 | ||
| 19 | 18 | 17 | 17 | 12 | 34 | 33 | 35 | Orange County | 7.25% | 3.50% | 3.75% | 17-declining; G/L 20 layered | N | 5 | ||
| 20 | 19 | 18 | 18 | 23 | 22 | 15 | 17 | Imperial County | 7.50% | 3.75% | 3.75% | 15 - declining; G/L 15 layered | Y: 70-130 | 5 | ||
| 21 | 24 | 19 | 15 | 9 | 21 | 21 | 14 | Marin County 4 | 7.25% | 3.00% | 4.25% | 17-declining; G/L 24 layered | N/A (Market) | N/A | ||
| 22 | 22 | 36 | 36 | 37 | 39 | 39 | 38 | Stanislaus County | 7.25% | 3.25% | 4.00% | 20 - declining | Y: 80-120 | 5 | ||
| 23 | 31 | 31 | 21 | 15 | 16 | 14 | 9 | Merced County | 7.25% | 2.75% | 4.50% | 13- declining;G/L 24 layered and ramped | N/A(market) | N/A | ||
| 24 | 23 | 21 | 25 | 16 | 17 | 16 | 19 | Los Angeles Fire & Police | 7.50% | 4.00% | 3.50% | most 21 declining; most G/L 20 layered | Y: 60-140 | 7 | ||
| 25 | 27 | 25 | 27 | 21 | 35 | 35 | 28 | San Luis Obispo County 8 | 7.125% | 3.375% | 3.75% | 24- declining | N | 5 | ||
| 26 | 26 | 23 | 19 | 28 | 28 | 25 | 23 | San Joaquin County 7 | 7.40% | 3.15% | 4.25% | 17-declining; G/L 15 layered | Y: 80-120 | 5 | ||
| 27 | 25 | 24 | 26 | 20 | 24 | 23 | 25 | Kern County | 7.50% | 3.75% | 3.75% | 19.5 - declining; G/L 18 layered | Y: 50-150 | 5 | ||
| 28 | 28 | 27 | 28 | 24 | 23 | 17 | 20 | Alameda County | 7.60% | 3.75% | 3.85% | 16 - declining ; G/L 20 layered | Y: 60-140 | 5 | ||
| 29 | 29 | 30 | 32 | 30 | 36 | 27 | 8 | Mendocino County | 7.25% | 3.75% | 3.50% | 23-declining; G/L 18 layered | Y: 75-125 | 5 | ||
| 30 | 21 | 26 | 20 | 14 | 15 | 6 | 6 | University of California 10 | 7.25% | 3.50% | 3.75% | 24-declining, G/L 20 layered Level $$ | N | 5 | ||
| 31 | 30 | 28 | 29 | 25 | 25 | 24 | 29 | Sacramento County | 7.50% | 3.50% | 4.00% | Most 19 - declining; G/L 20 layered | Y: 70-130 | 7 | ||
| 32 | 34 | 34 | 35 | 36 | 40 | 40 | 39 | East Bay Municipal Utility | 7.25% | 3.50% | 3.75% | Pre-2012 layered 30; Otherwise G/L-20 layered | Y: 70-130 | 5 | ||
| 33 | 32 | 32 | 30 | 26 | 26 | 20 | 22 | City of Los Angeles | 7.50% | 4.00% | 3.50% | most 26-declining ; G/L 15-layered | Y: 60-140 | 7 | ||
| 34 | 33 | 33 | 33 | 32 | 37 | 38 | 37 | CalPERS 3 | 7.50% | 3.00% | 4.50% | 19-declining with 5-year ramping | N/A(market) | N/A | ||
| 35 | 35 | 35 | 34 | 27 | 27 | 26 | 27 | Los Angeles County | 7.25% | 3.25% | 4.00% | 23- declining; G/L 30 layered | N | 5 | ||
| 36 | 36 | 37 | 37 | 35 | 29 | 28 | 26 | CalSTRS | 7.25% | 3.50% | 3.75% | 30 years with laddered increases | N | 3 | ||
| 37 | 37 | 29 | 24 | 19 | 19 | 19 | 21 | Tulare County 9 | 7.60% | 3.00% | 4.60% | 18-declining; G/L 19 layered | Y: 70-130 | 10 | ||
| NOTES: | Bold indicates change from previous survey. | |||||||||||||||
| 1: This does not reflect the Judges I system closed in 1994: features include pay-as-you-go funding and a 4.25% assumed investment return | ||||||||||||||||
| 2: Legal agreement determines contribution level -- pegged to specified funded ratios | ||||||||||||||||
| 3: Instead of asset smoothing, contribution smoothing via ramping | ||||||||||||||||
| Intent is to lower investment return to 7% over 2-3 years with undecided impact on base wage inflation | ||||||||||||||||
| 4: 50% of "extraordinary" 2008/09 losses amortized over 30 years; G/L amortization is subject to ramping | ||||||||||||||||
| 5 System is closed for non-Police; | ||||||||||||||||
| 6 Amortization will revert to average future working lifetime, roughly 10 years, in event FR becomes < 100% | ||||||||||||||||
| 7 Extraordinary 2008 actuarial loss amortized over 30 years | ||||||||||||||||
| 8 2008 actuarial losses amortized over 10 years and assumes proposed Experience Investigation changes are adopted | ||||||||||||||||
| 9 Assumed Investment return scheduled to decrease by 0.05% annually | ||||||||||||||||
| 10 Post-7/1/16 hires have option to elect to be in defined contribution ("DC") plan | ||||||||||||||||
| 6% contribution will be made toward UAL for those in DC plan. | ||||||||||||||||
| Additional state contributions may be required as 14% employer rate and 8% employee rate are significantly below actuarially determined rate. | ||||||||||||||||
| 11 If FR (funded ratio) >110%, 25-year amortization of surplus | ||||||||||||||||
| Survey and related text will be posted on roederfinancial.com We can be contacted at (619) 300-8500 | ||||||||||||||||
| FR = Funded ratio | G/L = actuarial gains/actuarial losses | "Layered" means a new amotization base is created each year. | ||||||||||||||
| POB = Pension Obligation Bond | DC = Defined Contribution | |||||||||||||||
| Effective with the 2013 survey, the number of entities was reduced from 40 to 37, eliminating three small closed systems. | ||||||||||||||||
| The amortization periods for assumption changes are often longer than for G/L and are not shown here. Often, there is a separate amortization policy applicable to benefit changes. | ||||||||||||||||